Calculate from the following information: $($a$)$ the basic EPS $($b$)$ the fully diluted EPS. The capital of the company is as follows: $500,000$ in $7$ per cent preference shares of $1$ each $1,000,000$ in ordinary shares of $25$p each $1,250,000$ in $8$ per cent convertible unsecured loan stock carrying conversion rights into ordinary shares as follows: on $31$ December $120$ shares for each $100$ nominal of loan stock. The profit or loss account for the year ended $31$ December showed: $($a$)$ Profit after all expenses, but before loan interest and corporation tax was $1,100,000.($b$)$ Corporation tax is to be taken as $35$ per cent of the profits shown in the accounts after all expenses and after loan interest.